CHOW FOR KUI t/a MAN CHEONG HONG v. NAN YANG VISUAL DISPLAY (HK) LTD

DCCJ6357/2005

IN THE DISTRICT COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

CIVIL ACTION NO. 6357 OF 2005

J U D G M E N T

1.  From early January to March 2005, by various quotations, the Plaintiff agreed to pay and the Defendant agreed to supply and deliver wooden hangers in the sum of $147,400. 

2.  There were implied terms in the Agreement that the wooden hangers supplied by the Defendant were to have merchantable quality and reasonably fit for the purpose for which they were required by the Plaintiff for clipping or holding garments. 

3.  The Defendant was well aware that the Plaintiff would re-sell the wooden hangers to the C K Group.

4.  Pursuant to the said Agreement, the Defendant delivered wooden hangers to the Plaintiff in or about March to April 2005. 

5.  Between March to April 2005, the Plaintiff delivered the wooden hangers to the CK Group in the Asia Pacific region including but not limited to Korea CK, Indonesia CK, Singapore CK, Taiwan CK and Hong Kong CK.  In or about early June 2005, the Plaintiff received complaints from various companies of the CK Group that the glue in the wooden hangers was dripping from the hangers and stained the garments hung onto the hangers; the glue, which was used to attach the metal clips to the plastic parts of the wooden hangers, dripped and stained the garments and skirts of the CK Group and the stains did not come out from the pants and skirts even after cleaning.  The wooden hangers therefore were not reasonably fit for the purpose for which they were required.  The Plaintiff immediately informed the Defendant about the problem, but the Defendant failed to make any constructive reply. 

6.  As a result of the defects in the wooden hangers, the Plaintiff paid compensations to the CK Group in the sum of $351,710, particularised as follows:-

Korea CK	$217,125.00
Taiwan CK	$45,000.00
Singapore CK	$34,413.60
Indonesia CK	$41,285.40
Hong Kong CK	$13,886.00

7.  The cost of replacement for the defective wooden hangers made by the Plaintiff is $67,058, particularised as follows:

Korea CK	$53,900.00
Taiwan CK	$2,940.00
Singapore CK	$4,240.00
Indonesia CK	$4,410.00
Hong Kong CK:	$1,568.00

8.  The cost of airfreight for the replacement of the wooden hangers incurred by the Plaintiff is $18,071.66, particularised as follows:

Korea CK	$11,672.06
Taiwan CK	$338.40
Singapore CK	$1,170.00
Indonesia CK	$4,671.20
Hong Kong CK	$220.00

9.  The cost of glue and labour for rectifying the defects in some of the defective wooden hangers incurred by the Plaintiff is $3,245. 

10.  The total loss and damages suffered by the Plaintiff is $440,084.66. 

11.  I therefore order that the Defendant do pay to the Plaintiff, within 14 days hereof, the sum of $440,084.66, with interest, at judgment rate, from 19th Dec., 2005 to the date of payment of the said sum. 

12.  The Defendant has not attended the trial to pursue its defence and counter-claim.  I therefore dismiss its counter-claim.

13.  I order that the Defendant do pay costs to the Plaintiff, to be taxed if not agreed.